Construction firm director disqualified for eight years

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Construction firm director disqualified for eight years

Samantha Fairweather, the director of Essex-based Fairweather Construction Ltd, has been disqualified from serving as a company director for eight years, after it was discovered that the firm took in excess of £300,000 in deposits for home improvement projects it failed to deliver.

Fairweather, 53, had been the sole director of the company since its incorporation in 2014. Her firm, which marketed itself as a specialist in residential building projects such as window installations and conservatories, ceased operations in September 2022, owing creditors more than £700,000, including over £100,000 in unpaid taxes to HMRC.

Financial mismanagement and unfinished projects

Despite seeking advice from an insolvency practitioner in April 2022, when the company’s financial difficulties first became apparent, Fairweather Construction continued to accept payments from customers for new work it was unable to complete.

At the time of seeking advice, the company had already received more than £150,000 in deposits for incomplete projects. Nevertheless, a further £177,900 was collected from homeowners between April and the company’s liquidation later that year.

Insolvency Service investigation

The case was brought to light following an investigation by the Insolvency Service.

Neil North, Chief Investigator, said: “Samantha Fairweather knew, or ought to have known, that the company she was a director of had unpaid debts to HMRC and had been unable to fulfil its obligations to existing customers.”

The investigation also revealed Fairweather’s misuse of a £50,000 loan under the government’s Bounce Back Loan Scheme, which was introduced to support small businesses during the Covid-19 pandemic. Of the sum received, £11,000 was used to repay a director’s loan, a clear breach of the scheme’s guidelines, which required funds to be applied solely for the economic benefit of the business.

Disqualification

Fairweather’s disqualification, effective from 21 October 2023, prevents her from forming, promoting, or managing any company without the permission of the court until October 2032.

The case provides a reminder to thoroughly vet suppliers before paying over deposits. It also emphasises that directors are responsible for knowing the up-to-date financial position of their company, and must particularly take care about the actions they take when the company looks to be becoming insolvent.

If you are concerned about the financial health of your business, or you need help obtaining up-to-date financial information on your business, please feel free to get in touch with us. We would be happy to help you.

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Construction firm director disqualified for eight years

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Construction firm director disqualified for eight years

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